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Feb 02 - 09:55 PM

AUD/USD - Under Pressure, But Trends Higher Into RBA Tuesday

By Andrew M Spencer  —  Feb 02 - 07:35 PM

  • -0.15% after falling 0.85% on USD strength as European yields slid

  • Central banks believe inflation is coming under control - do the RBA?

  • Recent data showed CPI above expectations, but retail sales slumped

  • Mixed signals for the RBA - RBAWATCH prices 25pt Feb 7 hike at 88.65%

  • Another 25 pt hike expected in April, but not fully priced until May

  • RBA too dovish as inflation built, they need to be confident to end hikes

  • Charts; momentum studies flat line, 21 day Bollinger bands contract

  • 10 & 21 daily and weekly moving averages climb - net positive setup

    For more click on FXBUZ


Source:
Refinitiv IFR Research/Market Commentary

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